Will the Stock market Crash Again in 2020? Here’s How to Prepare

by birtanpublished on September 9, 2020

Is the market going to crash again the short answer is yes there is always going to be another crash perhaps the more precise question people are asking is if there is going to be another market crash in 2020

Now i'm not nostradamus and literally no one can predict the future of the markets but what we can do is to prepare ourselves for different scenarios and create a strategy unique to our risk tolerance remember

That investing is not a one-size-fits-all and while everyone and anyone should be investing in order to break free from the paycheck to paycheck rat rate system

What makes sense for my investment portfolio may not make sense for yours in this video i'm going to show you an overview of how i've prepared myself for the last quarter of 2020. i'll be looking at

Historical data on the past eight election years and will take into account the pandemic and the surge of individual investors which has helped shift the market sentiment this year compared to the past

Election years i'll teach you my secret and super simple risk management method and of course my latest price targets for the markets this video is sponsored by invest divas make your money work for you power

Course so if you are interested in taking control of your financial future and to make your money work for you so that you can sleep soundly at night even if you're super busy with life and kids and even if

You're not a math wiz then head over to learn.investdiva.com for slash yes register your receipt from my free masterclass today we're going to queue in the intro and

While we do that head over to the comment section and tell me whether or not you're already invested in the stock market or if you're just thinking about getting started

We are going to q in the intro and let's go hey guys i'm canada danielle a four-time at a newly best selling author and the

Founder of the invest diva movement the march to jump on to take control of your financial future and to make your money work for you my mission is to help one million moms start investing on their own by the year

2025 so if you are a mom and or if you know of other moms who could benefit from taking control of their financial future please spread the word and help us make this

Huge shift in this male dominated field the best place to start is learn.investiva.com for slash yes the market has been incredibly volatile since the kovac 19 pandemic started we first had the massive

Sell-off in the beginning of the pandemic followed by the recovery of a few sectors and the boom of some others especially in the tech industry while the rest of the market struggled or even filed for bankruptcy

The biggest myth in the current market situation is the fact that we're literally at record high unemployment continued economic intervention by the federal reserve

And the mounting death toll from the coronavirus so it kind of feels like the stock market has been disconnected from the reality right and it gives us even more reasons not to

Try to time the market because while some people could see great results others could face a huge risk the main two risk every investor is facing right now are these number one the risk

Of missing out on great deals and two the risk of buying at a very high price right before the next market crash so before getting too deep into the market analysis i'm

Going to give you my simple method of managing my risk and invest with a peace of mind so i don't die from a heart attack every time the market goes up or down so once i

Find an asset that i really want to add to my portfolio after doing fundamental analysis and knowing that is suitable to my portfolio be it bitcoin or tesla or apple or even a boring high dividend paying

Index like blackstone mortgage trust i ask myself these two questions number one will i be upset if i buy today and its price drops by 50 tomorrow and number two will i be upset if i don't buy today and it's price goes

Higher by 50 tomorrow the answer to these two questions will determine my willingness to take a risk and once i commit to the risk that i'm willing to take

I don't have to check the market every two seconds after i buy the asset i'm confident in my strategy and no matter which direction the market goes the next day or weeks or months i won't budge end now i'd love to hear

From you what is the one asset that you wouldn't mind buying today even if it crashes tomorrow chances are your answer is an asset that you believe has a very high long-term growth

Potential right head over to the comment section and let me know and i might just pick your answer for my next stock analysis video next week now let's get to the best ways to

Prepare yourself for a potential market crash again we're not going to time the market what i do is simply identifying the key psychological levels that the market could drop to during the next crash

And if it is something that i only want to buy on a sale and not at today's market price i'll set buy limit orders there quick note here there are actually two ways to put a buy limit order and

There's a way to get paid whether or not your limit order goes through my guest next week is going to explain all about the second method so make sure that you're subscribed to my

Channel so you don't miss out on learning about this new technique today we're first going to take a look at the market price action in the past election years and then i'll

Give you my price targets for s p 500 nasdaq and the dow jones industrial average currently the nasdaq has had the best recovery after the pandemic simply because the majority of the stocks

Listed on nasdaq were among the few companies who either benefited from the chronovirus or were not directly impacted by the lockdowns the dow

And the s p 500 have recovered but not as much so as you can see the s p 500 actually almost reached my next price target at 3 600 on september 2nd just a crash towards the previous

All-time high in the 3300 zone nasdaq on the other hand is already above and beyond the pre-pandemic highs and it actually currently looks like it may be forming a double top bearish reversal

Chart pattern while the dow jones industrial average has already backed off before reaching the all-time high levels in order to look at the past

Elections and how the market reacted i'm going to first start with the dow jones switch into the monthly chart i've already marked the monthly chart with all the important recessions

In the past we had the great crash and then we had the collapse of the bretton woods system we had black monday we had the dot-com bubble the subprime mortgages that was the most recent one and of

Course then we had the chronovirus pandemic so those are the obvious recession and the crashes but what about the election years the election is held every four years in november

And the market had actually already reached an all-time high right before the election in 2016. then in the period leading to the election we had a little bit of a volatility

We actually had a formation of a double bottom chart pattern and then after the election the market actually dropped it dropped for three months before it started to

Recover and reaching all-time high levels every single month for almost four years the previous election was in 2012 the market had not fully recovered

From the 2008 crisis by may and then in september it kind of inched higher just to drop a little bit in november and the recovery started right after the elections

The previous election was right in the middle of the subprime mortgage crisis the market was obviously dropping not as fast as it did with the pandemic this time around

But it was dropping pretty rapidly and everybody was panicking the market continued to drop after the elections where obama was elected the first term and the recovery didn't start

Until march the previous election was in 2004 and the market actually recovered after the election and it was on an uptrend it continued to go higher but it kind of consolidated

Afterwards so this is the first time in the past 16 years when bush was elected the second term that the market didn't drop immediately after the election we had the dot-com bubble burst over here and

The previous year in 2000 the markets again dropped the two months after the elections the only year that the market didn't drop after the election was 2004 so far then we get into the 90s the 90s

Were a different era britney spears and eminem were rocking it and i was a teenager in iran so i obviously don't remember the markets back then but again looking at the charts

In 1996 the market was just going up after the election we had a little bit of a down month in december but then the con the market continued to generally go higher 1992 the same thing happened

Market actually continued to go higher black monday back in 1987 had a massive drop that only lasted for two months and then the recovery took over a year and a half so what do

We learn from looking at the chart going back this much the first thing that we can learn is that whatever goes down is going to go back up and the market in general is

Going to recover so we are not going to fear a market crash in fact we're going to welcome a market crash we already have had a massive crash happening and based on past performance we haven't seen

A major major crash right after a crisis and whether the recovery has been slow or fast the market has generally gone up after the crisis so chances are that we are going to see a volatility right after the election year and the

Pandemic but the market is generally going to continue to go up in the four years to come now the dow jones recovery has always been slower and we already started

September with a little bit of a pullback based on fibonacci retracement levels and the previous highs we could expect the dow to drop perhaps to the 26 000

Zone at bare minimum the s reached a new all-time high in september before pulling back we have to redo our key psychological level analysis over

Here so again a key support level for the s p 500 is right above the 30 to 100 level and the next level is at the highs of august 2018

Which was also resistance in 2019 just below 3 000. there was a lower chance that we could see a drop to as low as 3 000 but again nothing is off the table so if you're looking at any chart that looks like the

S p 500 you could set by limit orders at these fibonacci retracement levels of course the numbers the prices are going to be different if you're looking at a specific stock

That looks like the s p 500 and then we get to nasdaq whose growth has just been going on since 2012. right after the pandemic after nasa could he reached an all-time high the price

Dropped to as low as 50 percent of nashville trade small level and now we have a new high and a potential a little bit of pullback while the first five nights retracement level is uh at around 110

I would say the most likely support level for nasdaq would be at 119 followed by 110 and then 97. so if you're buying an index i would continue holding

Well into the pandemic and after the elections this obviously brings up the question which one is a better investment index fund or individual stocks i actually have

Created a video about this in the past which is in my youtube channel so make sure to check it out now without getting too political i'd love to hear from you how do you think the results of the election could change the stock market

Do you think a republican or a democratic win would have a major impact on the stock market or it wouldn't actually matter as much i would love to hear from you again

Please be respectful to each other i know the politics is a little bit of a crazy subject at the moment but i would love to get a sense of the market sentiment and what you guys are thinking in terms of

Politics and finance again thank you guys so much for joining me i am making more and more videos every single week so when you're subscribing to my youtube channel make sure to hit that bell notification

Button to get another notification when my next video is coming out if you like this video like it and share with your friends and help us spread the word about the investeeva

Movement invest responsibly and remember the only path to true wealth is by making your money work for you

Related Videos

Hi everyone my name is adita and a few years ago i got divorced and became a single mom of two kids and that's when i started to look for ways to invest my ...
Today I'm looking back at the Tesla stock on March 17th I did an analysis based on my ambassador diamond analysis the IDB a and I suggested that after its s...
The thing is if it's a legitimate expense and you are legitimately working from home take it you're literally throwing money leaving money on the table ...
Prenup is a very touchy subject to bring up with your sweetheart and is often viewed as taboo and something that could drive the romance away right welcome to t...
Dividend-paying stocks are the type of stocks that will pay you to hold them after you buy them it's kind of like getting a rental income after you buy real...
Mom wine culture is something that is a little bit cool a little bit sassy i've been following a ton of videos on it on tik tok and i even duet with mom win...
Hey there investivas and devos should you buy oracle on the tick tock partnership talks would tick-tock make oracle more attractive or was it already attractive...
How to invest in value stocks at a discount price that is not available to retail investors and get paid even if your market order doesn't go through in thi...
Is the market going to crash again the short answer is yes there is always going to be another crash perhaps the more precise question people are asking is if t...
Hi everyone and welcome to talking technicals I'm Kiana Danielle and today is November eleven two thousand eleven 11 11 11 you can probably see this interes...
Hi everyone and welcome to talking technicals I'm Canada Daniel with forex TV and we are going to do a technical analysis of the major currencies across the...
Hello everyone and welcome to talking technicals I'm Canada yell with forex TV today is thursday november seventeenth the day that marks two months for the ...
Welcome to talking technicals I'm Kiana Daniel currency analyst with Forex TV here is your technical analysis on the euro dollar for today January 10 2012 t...
A key meeting scheduled for later in the day between German Chancellor Angela Merkel and International Monetary Fund Managing Director Christine Lagarde German ...
Iran's currency fell twenty percent against a dollar in the last week despite Iranian central bank intervention many Iranians are concerned about the econom...
Have you ever traveled to a foreign country if you have you probably had to find a currency exchange counter in the airport and you probably noticed screen with...
Excuse me sir yeah also have you ever been to a foreign country I'm American I'll leave this country I have everything I want here we're not like Eu...
Hi investors is investiga on your coach Kiana and I'll be covering the hottest market gossips in just a moment but before we get started don't forget to...
Stocks Forex and crypto are things we'll like to invest though CEO of invest diva comm author of cryptocurrency investing for dummies Gianna Daniel the CEO ...
Hey it's the speaking forex crypto and stops this is investing on your coach Keanu I'll be covering the hottest market gossip in just a few moments but ...